Turkish Finance Minister Şimşek: Inflation in Decline, CBRT Year-End Target “Highly Attainable”

Turkish Treasury and Finance Minister Mehmet Şimşek stated that Türkiye’s inflation is clearly on a downward trend and expressed confidence that year-end inflation will remain within the Central Bank of Türkiye’s (CBRT) target range of 19% to 29%.

“The main goal of our economic program is to reduce inflation. Right now, inflation is falling,” Şimşek said in remarks following the release of the latest consumer price data.

Şimşek added that end-of-year inflation is expected to decline to the low 20s, and he views the likelihood of staying within the CBRT’s 2024 target range as “quite high.”

March 19 Capital Outflows: “Only Lasted Three Days”

Commenting on recent market volatility, Şimşek acknowledged that the week of March 19 triggered significant capital outflows, mostly driven by offshore investors.

“There was a serious outflow for the first three days. But by the following Monday, the situation had calmed down, and inflows from offshore markets even resumed,” he explained.

U.S. Trade War Uncertainty Also Affected Türkiye

Şimşek also linked market jitters to global developments, particularly trade tensions led by the United States. He noted that new waves of uncertainty have prompted a global shift away from risky assets, which has indirectly affected Türkiye.

“Concerns about a global slowdown triggered by trade wars have reduced risk appetite worldwide,” he said. “This, combined with domestic political uncertainty, created a dual shock. But the resilience of our program allowed us to withstand both shocks with limited impact.”